London market edgy so far

Investors were in an edgy mood today as the FTSE 100 Index fell back ahead of crucial unemployment numbers in the United States.

The job numbers are expected to have a major bearing on Wall Street’s progress and it was clear in London that most traders feared the worst.

Heavyweight banking and drug stocks led the latest decline as the Footsie eased 53.8 points to reach at 3826.5 by lunchtime.

The lack of corporate news in London added to the nervy mood while a fall on the Dow Jones Industrial Average last night set the tone early on.

Individual sectors were not helped by corporate news from the US last night with banks hurt by a profits warning from Bank of New York.

Abbey National fell 32.5p to 507.5p, a 6% decline, while Barclays slid 19.5p to 388p, Lloyds TSB was off 13p at 492p and Royal Bank of Scotland was 35p lower at £12.74.

Insurers were also suffering with Royal & Sun Alliance down 7p at 96.5p and Legal & General off 1.25p at 92.25p.

And drugs group GlaxoSmithKline weighed on the Footsie, falling 3%, or 41p to £12.96 following a warning from US firm Schering-Plough. AstraZeneca slid 4%, or 80p to £20.40.

Engineering group Invensys topped the Footsie fallers board with a decline of 7% – off 4.5p at 55.75 – after a broker downgraded its target price.

Others leading stocks under pressure included Vodafone down 3p at 90p, rival mmO2 off 0.75p at 45.75p and BT Group down 3.25p at 167.75p.

Retail stocks were generally brighter following widespread falls yesterday, when the sector was hit by disappointing sales figures from fashion chain Next.

Marks & Spencer managed to put back some of its losses, rising 14p to 307p while GUS was up 4p at 516p and Boots added 6p to 536.5p.

But Next, which alarmed the market by reporting a slowdown in sales because of the unseasonal weather, continued to fall, down 7.5p to 777p.

Among smaller stocks, health club group Fitness First remained on the slide following yesterday’s profits warning. Shares, which slumped more than a third yesterday fell another 29% today, down 39.5p to 95.5p, after the warning that full-year profits would be 20% below market hopes.

Rival LA Fitness also slid, down 4%, or 7.5p to 167.5p, despite putting out a reassuring statement saying its full-year figures would be in line.